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Forex Chart of the Day EUR/USD Trades Below January Low as AUD/USD 1.0200 Battle Resumes

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

FOREX Observation: The EURUSD took out the January low of 12997 and traded as low as 12965 before rebounding back above 13000 on Friday. The extent of weakness from the February high and structure (impulsive case can be made) make it likely that a significant (possibly for rest of the year) top is in place for the EURUSD but near term technicals (240 minute RSI holding 30 and market response below 12996) suggest a bottom is near. If we go any lower, then keep an eye on the trendline confluence and 50% retracement of the advance from 12041 at 12875.

FOREX Trading Implication: When such an advertised level (January low) gives way, I’m wary of chasing the break. A rebound back to the well-defined 13300 isn’t out of the question. The Daily Technicals will follow the near term picture.